**Charity number: 212575**
## **THE NUFFIELD OXFORD HOSPITALS FUND**
**TRUSTEES' REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 DECEMBER 2021**
## **THE NUFFIELD OXFORD HOSPITALS FUND**
## **CONTENTS**
||Page|
|---|---|
|**Reference and administrative details of the charity, its Trustees and advisers**|1 - 2|
|**Trustees' report**|3 - 11|
|**Independent auditors' report on the financial statements**|12 - 14|
|**Statement of financial activities**|15|
|**Balance sheet**|16|
|**Statement of cash flows**|17|
|**Notes to the financial statements**|18 - 35|
## **THE NUFFIELD OXFORD HOSPITALS FUND**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **Trustees**
Ms S Barratt Professor A Carr, Chair from 17 May 2021 Ms A Cowell Sir Andrew Dilnot Mr J Ford Dr A Grocock, Chair (retired 17 May 2021) Mr J Ramsden Dr A Thomson (retired 17 May 2021) Dr T Lancaster Mr J Burchfield
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## **THE NUFFIELD OXFORD HOSPITALS FUND**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021**
## **Charity registered number**
212575
## **Principal office**
c/o 16 Orchard Close, Eynsham, Witney, Oxford, Oxfordshire, OX29 4EZ
## **Secretary**
R Sonley (until 17 May 2022)
A Truesdale (from 18 May 2022)
## **Independent auditors**
Crowe U.K. LLP, Aquis House, 49 – 51 Blagrave Street, Reading, RG1 1PL
## **Bankers**
Barclays Bank Plc, 54 Cornmarket Street, Oxford, OX1 3HS
## **Solicitors**
Stone King LLP, 12 Queen Square, Bath, BA1 2HJ
## **Solicitors for Wintringham Estate**
Macfarlanes LLP, 20 Cursitor Street, London, EC4A 1LT
## **Master Developer/Joint Venture Partner**
Urban & Civic PLC, 50 New Bond Street, London, W1S 1BJ
## **Property Consultants**
Glanville Consultants Ltd, 3 Grovelands Business Centre, Boundary Way, Hemel Hempstead, HP2 7TE
## **Investment Managers**
Brewin Dolphin Ltd, 12 Smithfield Street, London, EC1A 9BD (to June 2021)
Sarasin & Partners LLP, Juxon House, 100 St. Paul's Churchyard, London, EC4M 8BU (from 1 April 2021)
Page 2
## **THE NUFFIELD OXFORD HOSPITALS FUND**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2021**
The Trustees present their annual report together with the audited financial statements of The Nuffield Oxford Hospitals Fund for the year ended 31 December 2021.
## **Objectives and activities**
## **a. Policies and objectives**
The object of the Charity, which is laid down in the Trust Deed, is to raise the standard of service of local hospitals, in order to assist the development and carrying on of the Oxford University Medical School.
The trustees believe that the purpose of the Charity, which is “to raise the standard of service of local hospitals, in order to assist the development and carrying on of the Oxford University Medical School”, satisfies the public benefit requirements.
The direct benefit which flows from this purpose is supporting the Oxford University Medical School in the training of doctors in Oxfordshire, by providing grants enabling the provision of, for example:
- Publication of a paediatric surgical oncology guidebook
- Equipment for improved simulator training facilities, including baby manikins
- Desktops and laptops to support the Bodleian health care and other libraries
- Hybrid audio-visual teaching equipment for in-person and remote access.
In addition, an annual budget is provided to the Oxfordshire Health Services Research Committee (enabling doctors in training to have research experience).
These benefits are evidenced through the requirement of all grant holders to provide on completion of their projects a written report to trustees on the benefits that have been achieved in supporting the training of doctors in their areas. In addition, trustee visits are usually arranged to meet with grant holders, although none were possible in 2021 due to COVID restrictions.
It should also be noted that The Nuffield Oxford Hospitals Fund (NOHF) monies provide added value and benefits over and above any NHS or University funding. The beneficiaries are ultimately the patients receiving treatment from the trained medical doctors, principally within the National Health Service.
In setting objectives and planning for activities, the trustees have given due consideration to general guidance published by the charity commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'. and have complied with section 4 of the Charities Act 2011.
.
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## **THE NUFFIELD OXFORD HOSPITALS FUND**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021**
## **Objectives and activities (continued)**
## **b. Strategies for achieving objectives**
The strategy of the Charity is to continue to ensure that the Charity’s investments provide an increasing and sustainable distributable income over the long term to support the objects of the Charity. That income is distributed in grants, which are selected based on medical priorities and maximisation of the benefit to the standard of service in line with the Charity’s objectives.
During the year, Trustees made the following changes to its investment strategy:
- On 25 January 2021, the Trustees formally approved adoption of a total return investment strategy, allowing greater flexibility in investment and a more predictable level of “income” to be allocated as grants.
- A review of investment managers commenced during 2020 concluded in February 2021. Sarasin was appointed as the Charity’s investment manager and the transfer of investments in specie and the proceeds from other investments commenced on 1 April 2021. Funds with Sarasin are invested in units in a pooled managed fund, the Sarasin Endowments Fund, rather than being invested directly in individual shares, bonds and a variety of funds, as was the case with the Charity’s previous investment manager, Brewin Dolphin.
In recent years, suitable grant applications to the Charity have been less than the charitable funds available, resulting in an accumulation of income reserves. The Trustees have for some time been considering how to resolve this either by attracting further grant applications or looking for larger, longer-term projects to fund from the accumulated income reserves. Following consultation with the Medical School on its funding needs, the Trustees discussed at a meeting on 2 December 2021 how the Charity’s future approach to grants might evolve to meet these needs and to ensure that the Charity’s available funds are used to generate as much benefit as possible. The strategy is still in development. Particular consideration is being given to:
- Extending grants for more than 1 year, potentially up to 3 years, thus increasing the range and scope of applications, and
- Larger one-off contributions towards projects such as the building of a new dedicated Oxford Medical School building. The time frame for this is likely to be around 10 years, allowing time for sufficient income to be accumulated.
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## **THE NUFFIELD OXFORD HOSPITALS FUND**
**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021**
## **Objectives and activities (continued)**
## **c. Activities undertaken to achieve objectives**
The activities of the Charity over the year comprise both investment activities and the grant making activities set out in the next section of this report.
The Charity’s investment activities have the objective of continuing to ensure that the investments provide an increasing and sustainable distributable income over the long term to support the objects of the Charity.
The current investment portfolio, overseen by the investment committee, provides the income to fund the grants awarded each year. As explained above, during 2021, the Charity changed its investment manager and now invests in units in a managed fund. From this year, the Charity is adopting a total return approach to the endowment invested in managed funds, resulting in income of £509,867 being recognised in the year. There is also a small amount of investment income generated by the investment of income reserves in managed funds and cash.
During the year under review, the Charity committed to 8 grants totalling £294,318 (2020: 14 grants totalling £418,047). As explained above, the Trustees are actively considering ways in which accumulated income reserves might be used to provide larger grants in future years.
Part of the Charity’s endowment is invested directly in land through a joint venture with Nuffield Dominions Trust (NDT) and Urban & Civic PLC (U&C). The Charity’s share of the joint venture partnership is 15%. The joint venture partnership was granted planning permission for up to 2,800 homes on the Wintringham site at the end of 2018 and, in spite of the COVID pandemic, work has proceeded throughout 2020 and 2021. Construction commenced with two housebuilders, Cala and Morris Homes, and a number of other housebuilders started work or signed contracts in 2021. Reports dated 8 March 2022 show completion on 97 units and exchange or reserve on a further 42 units.
In 2021, the Charity received Gift Aid income of £339,000 (2020: £451,199) from the joint venture partnership and accrued interest income of £248,657 on loans made to the partnership to fund WIP. U&C paid the final instalment of amounts owed for the purchase of the land and the partnership repaid £1,055,246 of the WIP loans made to it by the Charity in previous years. Cash flow forecasts for the partnership show that no further loans from the Charity will be required.
Monitoring of the project continues to take place through the Wintringham Partners Board (comprising representatives from U&C and NDT) and 1 Wintringham LLP (comprising 2 director/trustees from each of NDT and The Charity).
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## **THE NUFFIELD OXFORD HOSPITALS FUND**
**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021**
## **Objectives and activities (continued)**
## **d. Grant-making policies**
The Charity requires that grant applications, together with supporting information, are submitted to the Medical Sciences Department, John Radcliffe Hospital Secretary by the end of January each year. The applications are first reviewed by the Secretary (who seeks further information as necessary) and then by the medical trustees of the Charity. The medical trustees take into consideration the advice on priorities provided by the Medical Sciences Board (the Board of the University’s Medical Sciences Division which is responsible for organisation, development and delivery of the Medical Sciences curricula). The trustees will, if appropriate, make further enquiries themselves and prepare their own recommendations.
All grant applications, together with the recommendations of the Charity’s medical trustees, are considered by the full Board of trustees at the Annual Meeting in May. Each application is reviewed to consider the benefit it can generate and to ensure that it clearly follows the objects of the Charity. The acceptable applications are then prioritised and awarded in priority order to match the funds available for distribution. If the grant applications approved at the Annual Meeting are significantly less than the funds available, a second tranche of grants may be considered later in the year.
Grants awarded by the Charity’s trustees require endorsement by the Nuffield Medical Trustees, appointed to have oversight of the Nuffield Benefaction.
The payment of approved grants is conditional upon the relevant authorised expenditure being incurred and relevant evidence provided. Grant holders are advised that, if relevant authorised expenditure is not incurred within 18 months of the letter of approval, then the grant can be withdrawn unless a reasonable explanation is provided.
Grant holders are required to submit a 250 word report on completion of the project so that trustees understand the benefits gained from the funding and receive assurance that the funds have been spent in line with the application approved.
## **e. Main activities undertaken to further the charity's purposes for the public benefit**
The main public benefit activity in 2021 has been to award a total of £294,318 of grant support to the Oxford Medical School through 8 individual grant holders in a variety of clinical and academic departments. In 2021 there were over 1,000 registered medical students in the Oxford Medical School.
## **Achievements and performance**
## **a. Main achievements of the charity**
The main achievements have been to fund a wide range of training and educational activities and equipment. Important areas supported by grant funds provided during the year under awards made in 2021 and previous years were:
- Refurbishment of the clinical social pathology museum
- Skull surgery simulator
- Physiology, anatomy and genetics anatomical models
- Psychiatric simulation suite
- Upgrading IT & study facilities (NOC library)
- Bodleian Health Care Libraries refurbishment & textbooks
- Neuroscience simulator
- Palliative Care Sobell House – student equipment
- Simulated ward high fidelity manikins.
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## **THE NUFFIELD OXFORD HOSPITALS FUND**
**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021**
## **Achievements and performance (continued)**
## **b. Investment policy and performance**
The investments held by the Charity comprise a portfolio of direct and pooled investments together with its 15% interest in the Wintringham development at St Neot’s.
The performance and monitoring of the Wintringham investment is discussed above. This is a long-term investment and returns from it are expected to fluctuate over the next few years. Projections show that the development will generate significant returns for the Charity over the next ten to fifteen years.
Until April 2021, the Charity held quoted investments, both directly and in pooled funds, managed under a discretionary arrangement by Brewin Dolphin Ltd. From 1 April 2021, this portfolio was transferred to Sarasin and invested in one pooled fund, The Sarasin Endowments Investment Fund.
The investment policy in place during 2021 (set in 2016 and last reviewed in October 2020) states that the primary financial objective is to ensure that the Charity is invested to provide an increasing and sustainable distributable income to support the objectives of the Charity, while maintaining the real value of the fund over the longer term. It also sets a target drawdown rate of not less than 3.5% per annum.
The investment committee, which comprises three trustees, met with the Charity’s new investment managers twice during the financial year to oversee the performance of the portfolio. Performance was monitored from 31 May 2021 (the date on which the first significant transfer was completed) to 31 December 2021. In that period, the Sarasin Endowments Investment Fund produced a total return of 6.8% compared to a benchmark of 8.0%. This result was partly a result of timing as our funds were invested with Sarasin towards the end of a period of strong capital growth. The General Fund investments transferred from Brewin Dolphin to Sarasin were valued on transfer at £15,308,488, an increase of £740,287 (5.1%) from the value of the fund at 31 December 2020, £14,568,201. The outlook for investments is very uncertain given current geo-political events and higher inflation but the trustees believe that a diversified, actively managed multi asset fund remains the best approach to long term capital growth and a sustainable income stream.
It should be noted that in managing the portfolio, the Restricted Endowment Fund and the Pre 63 Accumulated income fund are managed as one fund, known as the General Fund.
## **Financial review**
## **a. Going concern**
The trustees have considered the impact of continuing uncertainty in financial and property markets on the Charity's ability to continue to fund grants. Taking into account the Charity’s cash resources and the liquidity of its investment portfolio, the trustees have a reasonable expectation that the Charity has adequate resources to continue to support existing grants and commitments and to continue in operational existence for the foreseeable future. If the expected return to be generated by funds were to decline, the Charity has the ability to adjust future grants accordingly. For these reasons, the trustees continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.
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## **THE NUFFIELD OXFORD HOSPITALS FUND**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021**
## **b. Reserves policy**
It is the policy of the trustees to maintain sufficient reserves in the Charity's Post 1963 Accumulated Income Fund, to provide for a minimum of one year’s charitable expenditure, towards the Charity's object. The capital of the General Fund Capital Account cannot be realised for use as income. However, if required, the Pre 1963 Accumulated Income Fund should enable the trustees to continue appropriate levels of expenditure in the coming years, even if there were to be decreases in the Charity's investment income.
In the opinion of the trustees, the Charity's assets are adequate to meet its obligations.
## **c. Surplus in the year**
The Balance Sheet as at 31 December 2021 shows that the Charity’s net assets total £28,684,425, an increase of £2,053,248 on to the net assets at 31 December 2020, as restated for the change in accounting policy for grants (See Note 19). There was a surplus for the year before net investment gains of £407,760 (2020: £370,404 (as restated)). The net gain on disposal and revaluation of assets in the Investment Portfolio of the Charity during the year was £1,645,488 (2020: £259,017).
## i. Endowment Fund
At 31 December 2021, the balance of the Endowment Funds amounted to £26,814,859, an increase of £1,577,330 during the year. This increase arose mainly from net gains on the valuation of investments.
## ii. Accumulated Income Fund Post 1963
The Statement of Financial Activities for this fund shows a net increase of £475,918 for the year.
Incoming resources amounted to £1,109,538 (2020: £884,644), including receipt of gift aid of £339,000 (2020: £451,199) and interest income of £248,647 (2020: £nil) from the charity’s Wintringham investment.
Resources expended amounted to £650,952 (2020: £514,240 (as restated)). Expenditure included costs of £326,667 relating to contractual obligations arising on the Wintringham development.
There were gains on the fund assets of £17,322. The balance on the Accumulated Income Fund Post 1963 at 31 December 2021 was £1,869,566 compared to £1,393,648 at 31 December 2020.
## **Structure, governance and management**
## **a. Constitution**
The governing document is a Trust Deed, dated 4 December 1937, as amended by schemes of 1 July 1952, 22 December 1953, 19 May 1976 and 6 March 1998.
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## **THE NUFFIELD OXFORD HOSPITALS FUND**
**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021**
## **Structure, governance and management (continued)**
## **b. Methods of appointment or election of Trustees**
New trustees are appointed by the existing trustees and serve for five years. They may then put themselves forward for re appointment which is considered at the Annual General Meeting.
The existing trustees carry out an appropriate selection process and conduct background checks before offering posts to new trustees. When considering new trustees, the existing trustees look for specific areas of expertise to help meet the objectives of the Charity.
## **c. Policies adopted for the induction and training of Trustees**
The induction and training of new trustees and the information with which they are provided are tailored depending on the Trustees’ background, interests and roles. A copy of the Trust Deed is provided along with annual accounts, risk assessments, investment reports and contact details of fellow trustees. Additional information is provided to any medical trustees who will be involved in assessing grants applications and making recommendations for awards.
All trustees receive regular updates on Charity Commission publications and attend appropriate charity seminars where relevant.
## **d. Organisational structure and decision making policies**
Under the terms of a Special Resolution passed on 15 July 2020, the maximum number of trustees is ten. A total of ten trustees served during the year. Having been appointed on 22 September 2020 as the Chair designate, Professor A Carr took over that role following the retirement of Dr A, Grocock on 17 May 2021.
Three trustees served on the Investment Committee which met twice during the year.
Following the creation of the joint venture with Urban & Civic, matters relating to Wintringham are dealt with by 1 Wintringham LLP, which has 2 directors representing the Charity and 2 representing NDT. Meetings are held twice a year and information is shared with other trustees as appropriate. The Charity has no membership of Wintringham Partners Board, but the Chair has been an observer at most of the board meetings.
The day-to-day administration of the Charity is undertaken by the Charity Secretary, in consultation with the Chair and other trustees as required.
## **e. Financial risk management**
The trustees have assessed the major risks to which the charity is exposed, in particular, those related to the operations and finances of the charity, including the continuing impact of Brexit and Covid19. The trustees also continue to monitor closely the risks associated with the development of the Wintringham land. The trustees are satisfied that systems and procedures are in place to mitigate the exposure to the major risks.
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## **THE NUFFIELD OXFORD HOSPITALS FUND**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021**
## **Plans for future periods**
The trustees are expecting to continue to provide further grants in the future to meet the Charity’s object. The trustees are aware of the need to make full use of available income and, as considered under strategies for achieving objectives are looking at ways of enhancing and extending the types of grants offered. The development of the Wintringham land is expected to provide significant additional funds to enhance future grant giving, although cashflows from the development are likely to be limited in the short term.
As set out in strategies for achieving objectives, detailed discussions will continue to consider whether the funds that the Charity may receive arising from Wintringham could be used for a more significant one-off project such as the enhancement of facilities for the Medical School throughout the Oxford Hospitals.
## **Statement of Trustees' responsibilities**
The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles of the Charities SORP (FRS 102);
- make judgments and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Disclosure of information to auditors**
Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:
- so far as that Trustee is aware, there is no relevant audit information of which the charity's auditors are unaware, and
- that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditors are aware of that information.
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## **THE NUFFIELD OXFORD HOSPITALS FUND**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021**
Approved by order of the members of the board of Trustees and signed on their behalf by:
**Professor A Carr** (Chair of Trustees) Date: 17 May 2022
**Ms S Barratt**
Date: 17 May 2022
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## **THE NUFFIELD OXFORD HOSPITALS FUND**
## **INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF THE NUFFIELD OXFORD HOSPITALS FUND**
## **Opinion**
We have audited the financial statements of Nuffield Oxford Hospitals Fund (‘the charity’) for the year ended 31 December 2021 which comprise the statement of financial activities, the balance sheet, the cash flow statement and the related notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the charity’s affairs as at 31 December 2021 and of its incoming and application of resources, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
## **Other information**
The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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## **THE NUFFIELD OXFORD HOSPITALS FUND**
## **INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF THE NUFFIELD OXFORD HOSPITALS FUND (CONTINUED)**
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
- the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or
- sufficient and proper accounting records have not been kept by the charity; or
- the financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement set out on page 10, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 144 of the Charities Act 2011, and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and noncompliance with laws and regulations are set out below.
## **Extent to which the audit was considered capable of detecting irregularities, including fraud**
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.
We obtained an understanding of the legal and regulatory frameworks within which the charity operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements.
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## **THE NUFFIELD OXFORD HOSPITALS FUND**
## **INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF THE NUFFIELD OXFORD HOSPITALS FUND (CONTINUED)**
## **Extent to which the audit was considered capable of detecting irregularities, including fraud (continued)**
The laws and regulations we considered in this context were the Charities Act 2011 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charity’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity for fraud. The laws and regulations we considered in this context were General Data Protection Regulation and taxation legislation.
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income, and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing income transactions close the end of the period and reading minutes of meetings of those charged with governance.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Use of our report**
This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
## **Crowe U.K. LLP** Statutory Auditor
## Reading
## 17 May 2022
Crowe U.K LLP are eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
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## **THE NUFFIELD OXFORD HOSPITALS FUND**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021**
|Notes
**Income and endowments**
**from:**
Donations and legacies
Investments
2
Allocation of Total Return
12
**Total income**
**Expenditure on:**
Raising funds
3
Charitable activities
4
**Total expenditure**
Net gains/(losses) on
investments
11
**Net movement in funds**
**Total funds brought**
**forward**_as restated_
**Total funds**
**carried forward**|**Endowment**
**Funds**
**2021**
**£**
**-**
**521,393**
**(509,867)**
**11,526**
**62,352**
**-**
**62,352**
**1,628,156**
**1,577,330**
**25,237,529**
**26,814,859**|**Accumulated**
**Income Fund**
**Post 1963**
**2021**
**£**
**-**
**599,671**
**509,867**
**1,109,538**
**1,433**
**649,519**
**650,952**
**17,332**
**475,918**
**1,393,648**
**1,869,566**|**2021**
**Total**
**£**
**-**
**1,121,064**
**-**
**1,121,064**
**63,785**
**649,519**
**713,304**
**1,645,488**
**2,053,248**
**26,631,177**
**28,684,425**|_2020_
_Total_
_As_
_Restated_
_£_
_-_
_884,644_
_-_|
|---|---|---|---|---|
|||||_884,644_|
|||||_48,401_
_465,839_|
|||||_514,240_|
|||||_259,017_|
|||||_629,421_
_26,001,756_|
|||||_26,631,177_|
The Statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 18 to 35 form part of these financial statements.
Page 15
## **THE NUFFIELD OXFORD HOSPITALS FUND**
## **BALANCE SHEET AS AT 31 DECEMBER 2021**
|Notes
**Fixed assets**
Tangible assets
10
Investments
11
**Current assets**
Debtors
13
Cash at bank and in hand
21
Creditors: amounts falling due within
one year
14
**Net current assets**
**Total assets less current liabilities**
**Total net assets**
**Charity funds**
**Endowment Funds**
Restricted endowment funds
16
Accumulated income fund pre 1963
16
**General Funds**
Accumulated income fund post 1963
16|**1,131,382**
**2,100,627**
**3,232,009**
**(744,542)**|**2021**
**£**
**-**
**26,196,958**
**26,196,958**
_2,340,244_
_2,127,867_
_4,468,111_
_(442,012)_
**2,487,467**
**28,684,425**
**28,684,425**
**25,037,371**
**1,777,488**
**26,814,859**
**1,869,566**
**28,684,425**|_2020_
_As restated_
_£_
_-_
_22,605,078_|
|---|---|---|---|
||||_22,605,078_
_4,026,099_
_26,631,177_
_26,631,177_
_23,598,183_
_1,639,346_
_25,237,529_
_1,393,648_
_26,631,177_|
The financial statements were approved and authorized for issue by the Trustees and signed on their behalf by:
**Professor A Carr** (Chair of Trustees) Date: 17 Ma y 2022
## **Ms S Barratt**
Date: 17 May 2022
The notes on pages 18 to 35 form part of these financial statements.
Page 16
## **THE NUFFIELD OXFORD HOSPITALS FUND**
## **STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021**
|**Cash flows from operating activities**
Net cash used in operating activities
**Cash flows from investing activities**
Dividends, interests and rents from investments
Proceeds from sale of investments
Purchase of investments
Treasury deposit
**Net cash provided by/(used in) investing activities**
**Cash flows from financing activities**
**Net cash provided by financing activities**
**Change in cash and cash equivalents in the year**
Cash and cash equivalents at the beginning of the year
**Cash and cash equivalents at the end of the year**
Note numbers 20 to 22 form part of the statement of cash flows.|**2021**
**£**
**798,088**
**1,121,064**
**16,601,274**
**(19,079,535)**
**-**
**(1,357,197)**
**-**
**(559,109)**
**2,681,598**
**2,122,489**|_2020_
_As restated_
_£_
_906,763_|
|---|---|---|
|||_884,644_
_1,808,576_
_(2,489,364)_
_500,000_
_703,856_
_-_
_1,610,619_
_1,070,979_
_2,681,598_|
Page 17
## **THE NUFFIELD OXFORD HOSPITALS FUND**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **1. Accounting policies**
## **1.1 Basis of preparation of financial statements**
The financial statements have been prepared in accordance with ‘Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Second Edition)’ and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015.
The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following ‘Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Second Edition)’ rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
The Nuffield Oxford Hospitals Fund meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
In 2021, the Trustees decided to change the accounting policy in respect of grants payable to a policy which is more aligned with current accounting practice and reflects the reality that grants are rarely if ever withdrawn. The effect of this change in accounting policy is more fully described in note19.
Other than the policy for grant recognition, all policies are consistent with the prior year.
## **1.2 Going concern**
The financial statements have been prepared on a going concern basis, as the trustees believe that no material uncertainties exist in respect of the Charity’s ability to meet its obligations as they fall due in the foreseeable future. In reaching this conclusion, the trustees have considered the level of funds held, the liquidity of those funds and the expected levels of income and expenditure for 12 months from the date on which these financial statements were signed.
## **1.3 Tangible fixed assets and depreciation**
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition are included in the measurement of cost.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.
Depreciation is provided on the following basis:
Computer equipment - 25% Straight Line
A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of financial activities.
Page 18
**THE NUFFIELD OXFORD HOSPITALS FUND**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **1. Accounting policies (continued)**
## **1.4 Investments**
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses are included as ‘Gains/(Losses) on investments’ in the Statement of financial activities.
Investment in subsidiary undertakings is valued at historic cost less provision for impairment.
Investments in the joint venture represents the charity’s interest in the development of the Wintringham Estate. The investment is carried at cost which is equal to the fair value of the land at the date of its transfer to Wintringham Partners LLP together with later additional loans less repayments. The investment forms part of the charity's restricted endowment funds.
Listed investments held as fixed assets are shown at market value.
## **1.5 Financial instruments**
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
## **1.6 Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
## **1.7 Income**
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
The incoming resources represent all the income received from quoted investments, bank deposits and income from properties. All incoming resources are taken to the Post 1963 Accumulated Income Fund.
Page 19
## **THE NUFFIELD OXFORD HOSPITALS FUND**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **1. Accounting policies (continued)**
## **1.8 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the charity's objectives, as well as any associated support costs.
Grants payable are included where the grant has been agreed during the year and there are no conditions to be met relating to the grant which remain in the control of the charity.
Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements.
## **1.9 Interest receivable**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
## **1.10 Debtors**
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **1.11 Cash at bank and in hand**
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **1.12 Liabilities and provisions**
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.
Page 20
## **THE NUFFIELD OXFORD HOSPITALS FUND**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **1. Accounting policies (continued)**
## **1.13 Critical accounting estimates and areas of judgment**
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Critical accounting estimates and assumptions:
The charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Critical areas of judgment:
The critical areas of judgement relate to the valuation of Wintringham related investments and the recoverability of Wintringham loans.
## **1.14 Gains & Losses on Investments**
Gains and losses on quoted investments held in the General Fund of the Capital Account and on the Pre 1963 Accumulated Fund are treated as capital and added to the relevant fund.
Gains and losses on quoted investments held in the Post 1963 Accumulated Income Fund are added to this fund.
## **1.15 Total Return Investment Accounting**
The charity has adopted a ‘Total Return’ basis for the investment of its endowment. The carrying value of the preserved permanent capital, the trust for investment, and the amount of any unapplied total return available for expenditure were taken as the fair value of these funds as at 31 December 2010, as adjusted for inflation, as being after the financial crash and before a period of growth. In choosing this date, the Trustees also considered the change of investment managers close to that date and the start of a new investment regime.
It invests these funds without regard to the capital/income distinctions of standard trust law and with discretion to apply any part of the accumulated total return on the investment as income for spending each year. Until this power is exercised, the total return is accumulated as a component of the endowment known as the unapplied total return that can be either retained for investment or released to income at the discretion of the Trustees.
Page 21
## **THE NUFFIELD OXFORD HOSPITALS FUND**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **2. Investment income**
|Income from quoted investments
Income from investments in Wintringham
Interest on Wintringham loans
Bank interest|**Total Funds**
**2021**
**£**
**533,182**
**339,000**
**248,657**
**225**
**1,121,064**|_Total funds_
_2020_
_£_
_426,143_
_451,199_
_-_
_7,302_|
|---|---|---|
|||_884,644_|
**3. Investment management costs**
|Investment management fees|**Total Funds**
**2021**
**£**
**63,785**|_Total funds_
_2020_
_£_
_48,401_|
|---|---|---|
## **4. Analysis of expenditure on charitable activities**
|**Summary of fund type**
Award of Grants (note 6)
Development of Wintringham (note 5)
Support costs (note 5)|**Total Funds**
**2021**
**£**
**294,318**
**326,667**
**28,534**
**649,519**|_Total funds_
_2020_
_£_
_418,047_
_-_
_47,792_|
|---|---|---|
|||_465,839_|
All expenditure relates to the Accumulated Income Post 1963 Fund.
Page 22
## **THE NUFFIELD OXFORD HOSPITALS FUND**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **5. Support Costs**
|Staff costs
Insurance
Trustee meeting expenses
Bank charges
Sundry expenses
Legal and professional costs
Governance costs
_Staff costs_
_Insurance_
_Trustee meeting expenses_
_Bank charges_
_Sundry expenses_
_Legal and professional costs_
_Governance costs_|**Award**
**of**
**Grants**
**2021**
**£**
**11,300**
**725**
**1,496**
**493**
**-**
**-**
**14,520**
**28,534**
_Award_
_of_
_Grants_
_2020_
_£_
_10,500_
_820_
_190_
_82_
_500_
_23,144_
_12,556_
_47,792_|**Development**
**of**
**Wintringham**
**2021**
**£**
**-**
**-**
**-**
**-**
**326,667**
**-**
**-**
**326,667**
_Development_
_of_
_Wintringham_
_2020_
_£_
_-_
_-_
_-_
_-_
_-_
_-_
_-_
_-_|**Total**
**funds**
**2021**
**£**
**11,300**
**725**
**1,496**
**493**
**326,667**
**-**
**14,520**|
|---|---|---|---|
||||**355,201**|
||||_Total_
_funds_
_2020_
_£_
_10,500_
_820_
_190_
_82_
_500_
_23,144_
_12,556_|
||||_47,792_|
Page 23
## **THE NUFFIELD OXFORD HOSPITALS FUND**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **6. Grants**
|**Institutions**
Annual budget for research – Oxfordshire Health Services Research
Committee
Bodleian Health Care Libraries, Expansion of Student Spaces
Dr Donald Mackay (grant 94000)
Bodleian Health Care Libraries, Improving Training Facilities
Dr Donald Mackay (grant 94001)
Medical student textbooks – Dr Donald Mackay. Bodleian Health
Care Libraries (grant no.94002)
Chairs needed to support medical student education – Dr Mary
Miller. Palliative Care,Sobell House (grant no. 94003)
Medical School: Graduate Entry Medicine, A project to improve
online video creation to enhance student experience through
blended learning., Dr Jack Amiry (grant 94004)
To develop a simulated ward environment with higher fidelity
mannequins to motivate students and enhance skill acquisition –
Catriona Fleming. Resuscitation Department (grant no.94005)
Department of Clinical Neurosciences, Consultation Companions
Dr Gina Hadley and others (Grant 94006)
Psychiatry and Emergency Medicine, To provide an online medical
student wellbeing resource. Dr Joseph Butler, Dr Kate Saunders,
and Dr Lois Brand (Grant 94007)
ENT. To purchase a 3D monitor for ENT theatres West Wing
(amended bid from £71806). Mr Sam MacKeith (grant 94008)
Medical School. The next generation Harvey – Cardiorespiratory
Patient Simulator. Dr Catherine Swales (grant 94009)
Human Anatomy, DPAG. Custom 3D printed design and 3D printing
of anatomical models to augment undergraduate medical student
teaching of the lumbosacral plexus, mediastinum and root of neck.
Mr Thomas Cosker (grant 94010)
Ultrasound training simulator – Dr Ed Sellon and Dr Helen Higham.
Clinical Radiology(grant no. 94011)
Portable ultrasound equipment – Dr Ed Sellon and Dr Suzie Anthony.
Clinical Radiology(grant no. 94012)
Improving Fidelity and realism of resuscitation education for medical
students while maintaining student safety. Catriona Fleming (grant
95000)
Creation of educational films to develop online clinical teaching.
Nuffield Dept of Primary Care Health Sciences. Dr Alison Convey
(grant 95001)
BHCL IT Bid. Donald M Mackay (grant 95002)
Hybrid teaching (combined remote and in-person) AV kit. Medical
Sciences Division Learning Technologies team. Damion Young
(grant 95003)
Audio Visual Teaching Equipment. NDORMS. Matt Brock (grant
95004)
Webinar Equipment. Oxford University Global Surgery Group ,
Nuffield Department of Surgical Science. Dr Sarah Davidson (grant
95005)
Oxford Brain Visualisation Suite (OBVioS). Nuffield Department of
Clinical Neurosciences. Olaf Ansorge & Sanjeeva Jeyaretna Grant
95006)
Total|**2021**
**£**
**100,000**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**10,900**
**7,650**
**15,219**
**54,688**
**55,718**
**3,700**
**46,443**
**294,318**|_2020_
_£_
_80,000_
_11,457_
_14,867_
_25,888_
_11,532_
_23,275_
_10,490_
_20,934_
_16,800_
_55,740_
_61,778_
_30,000_
_43,300_
_11,986_
_-_
_-_
_-_
_-_
_-_
_-_
_-_|
|---|---|---|
|||_418,047_|
Page 24
## **THE NUFFIELD OXFORD HOSPITALS FUND**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **7. Auditors’ remuneration**
|Fees payable to the charity’s auditor for the audit of the charity’s annual
accounts excluding VAT
Fees payable to the charity’s auditor excluding VAT in respect of:
Preparation of annual accounts
Payroll processing|**2021**
**£**
**9,120**
**2,500**
**-**|_2020_
_£_
_7,800_
_4,072_
_684_|
|---|---|---|
## **8. Staff costs**
|Wages and Salaries
Employer NIC|**2021**
**£**
**11,000**
**300**
**11,300**|_2020_
_£_
_10,500_
_-_|
|---|---|---|
|||_10,500_|
The average number of persons employed by the charity during the year was as follow:
|Secretary|**2021**
**£**
**1**|_2020_
_£_
_1_|
|---|---|---|
No employee received remuneration amounting to more than £60,000 in either year.
The key management personnel of the Charity include all Trustees along with the secretary. R Sonley. The total remuneration paid to the key management personnel amounted to £11,000 _(2020: £10,500)._
## **9. Trustees’ remuneration and expenses**
During the year no Trustees received any remuneration or other benefits _(2020 - £Nil)._
During the year ended 31 December 2021, expenses totalling £nil were reimbursed or paid directly to Trustees _(2020 - £90 to 3 Trustees)_ . The expenses reimbursed are in relation to the travel expenses for Trustees to attend Trustee meetings.
Page 25
## **THE NUFFIELD OXFORD HOSPITALS FUND**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **10. Tangible fixed assets**
|**Cost of valuation**
At 1 January 2021
Disposals
At 31 December 2021
**Depreciation**
At 1 January 2021
Disposal
At 31 December 2021
**Net book value**
At 31 December 2021
_At 31 December 2020_|**Computer**
**equipment**
**£**
**660**
**(660)**|
|---|---|
||**-**
**660**
**(660)**|
||**-**
**-**
_-_|
Page 26
## **THE NUFFIELD OXFORD HOSPITALS FUND**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **11. Fixed asset investments**
|**Cost or valuation**
At 1 January 2021
Less cash held by Investment Managers
Additions
Disposals proceeds
Unrealised gains/(losses) on investments
Cash held by Investment Managers
**At 31 December 2021**|**Post 1963**
**income**
**Fund**
**£**
**377,684**
**(29,965)**
**378,285**
**(348,819)**
**17,332**
**500**
**395,017**|**Pre 1963**
**income fund**
**(1,093 units)**
**£**
**1,589,980**
**(57,248)**
**1,716,147**
**(1,661,055)**
**138,142**
**1,924**
**1,727,890**|**Restricted**
**endowment**
**fund**
**(8,907 units)**
**£**
**12,957,704**
**(466,518)**
**16,985,103**
**(13,536,154)**
**1,490,014**
**19,438**
**17,449,587**|**Investment**
**in 1**
**Wintringham**
**LLP**
**£**
**23**
**-**
**-**
**-**
**-**
**-**
**23**|**Wintringham**
**Partners LLP**
**loan**
**investment**
**£**
**7,679,687**
**-**
**-**
**(1,055,246)**
**-**
**-**
**6,624,441**|**Total**
**funds**
**2021**
**£**
**22,605,078**
**(553,731)**
**19,079,535**
**(16,601,274)**
**1,645,488**
**21,862**
**26,196,958**|
|---|---|---|---|---|---|---|
Page 27
## **THE NUFFIELD OXFORD HOSPITALS FUND**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **11. Fixed asset investments (continued)**
## **Historical Cost**
With effect from 1 July 1997, the Stocks and Shares held in the Restricted Endowment Fund and Pre 1963 Accumulated Income Fund were pooled. The total Trust Pool assets are regarded as being equivalent to 10,000 units which have been allocated between the Restricted Endowment Fund and the Pre 1963 Accumulated Income Fund pro rata in relation to their input to the pool. The Restricted Endowment Fund has an allocation of 8,907 units and the Pre 1963 Accumulated Income Fund 1,093 units. Following the transfer of £3,000,000 into the investments from the Restricted Endowment Fund, the closing split was adjusted to 9099 vs 901.
## Loan Investment
The charity through its membership of 1 Wintringham LLP has a commitment to issue partner loans to Wintringham Partners LLP as required to fund its share of development costs. The loan investment comprises an amount due from Wintringham Partners LLP arising from the transfer of the Charity’s land in 2017 along with an additional loan to fund working capital. Loans totalling £nil were made during in the year (2020: £1,080,000). A repayment of £1,055,246 (2020: £nil) was received in the year. The carrying value of the investment continues to be its cost which is equal to the fair value of the land at the date of its transfer to Wintringham Partners LLP together with later additional loans less repayments.
## **Investment type**
An analysis of the investments has been done as at 31 December 2021 to distinguish between Direct Investments, Pooled Investments and Subsidiary Investments. The split is as indicated below:
|**Post 1963 Income Fund**
Cash
Direct Investments
Pooled Investments
**Restricted Endowment Fund & Pre 1963 Income Fund**
Cash
Direct Investments
Pooled Investments
**Loan to Wintringham Partners LLP**
Subsidiary Investment
**Investment in 1 Wintringham Partners LLP**
Investment in joint venture
**Total**|**2021**
**£**
**500**
**-**
**394,517**
**21,362**
**-**
**19,156,115**
**6,624,441**
**23**
**26,196,958**|_2020_
_£_
_29,965_
_17,316_
_330,404_
_523,766_
_3,428,726_
_10,595,191_
_7,679,687_
_23_|
|---|---|---|
|||_22,605,078_|
Page 28
## **THE NUFFIELD OXFORD HOSPITALS FUND**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **12. Statement of Investment Total Return**
From 1 January 2021, the Trustees have decided to adopt total return accounting for the restricted endowment fund and the Accumulated Income Fund pre-1963, both of which are treated as permanent capital of the Charity. The Fund for Investment at 1 January 2021 has been calculated by taking the permanent capital of the Charity at 31 December 2010 and calculating its real value at 31 December 2020, using CPI.
The investment return to be applied as income is calculated initially as 3.5% (2020: NA) of the endowment funds held as managed investments and capital accounts held by the Investment Managers at 1 January 2021.
The income allocation from the Total Return earned will be reviewed each year.
|**At 1 January 2021**
Gift Component
Unapplied Total Return
Total Endowments
**Movement in the year**
Investment Return
Dividends and Interest
Gains and Losses
Less Investment Managers Fees
**Total**
Unapplied total return allocated to
income in the reporting period
Net movements in the reporting period
**At 31 December 2021**
Gift Component
Unapplied Total Return
**Total**|**Trust for Investment**
**Restricted**
**endowment**
**fund**
**Accumulated**
**income fund**
**pre 1963**
**£**
**£**
**16,059,992**
**1,254,436**
**-**
**-**
**16,059,992**
**1,254,436**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**16,059,992**
**1,254,436**
**-**
**-**
**16,059,992**
**1,254,436**|**Unapplied**
**Total Return**
**£**
**-**
**7,923,101**
**7,923,101**
**521,393**
**1,628,156**
**(62,352)**
**2,087,197**
**(509,867)**
**1,577,330**
**-**
**9,500,431**
**9,500,431**|**Total**
**2021**
**£**
**17,314,428**
**7,923,101**
**25,237,529**
**521,393**
**1,628,156**
**(62,352)**|
|---|---|---|---|
||||**2,087,197**
**(509,867)**|
||||**1,577,330**
**17,314,428**
**9,500,431**
**26,814,859**|
There is no prior year comparative for the Statement of Investment Total Return as the policy was implemented at the start of the reported year.
Page 29
**THE NUFFIELD OXFORD HOSPITALS FUND**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **13. Debtors**
|**Due within one year**
Amounts owed by undertakings in which the charity has a participating
interest
Other debtors
Prepayments and accrued income|**2021**
**£**
**1,083,106**
**48,276**
**-**
**1,131,382**|_2020_
_As restated_
_£_
_2,304,448_
_35,796_
_-_|
|---|---|---|
|||_2,340,244_|
Amounts owed by undertakings in which the charity has a participating interest comprise:
- an outstanding balance of £9,000 _(2020: £9,000)_ due from 1 Wintringham LLP.
- an outstanding balance of £nil _(2020: £1,814,999)_ which arose on the transfer of the Charity’s land in 2017.
- a corporate loan issued to Wintringham Partners LLP of £975,072 ( _2020: £450,000_ ).
- a corporate loan issued to Wintringham Newco 1 Ltd of £99,034 ( _2020: £30,449_ ).
The other debtors include an amount of £32,759 _(2020: £14,539)_ relating to money that is being held by Oxford Hospitals Charity for invoices due for payment.
## **14. Creditors: Amounts falling due within one year**
|Other taxation and social security
Grants payable
Other creditors
Accruals and deferred income
**Grants payable**
Grants payable 1 January 2021
New Grants Awarded
Grants paid
Grants payable 31 December 2021||**2021**
**£**
**1,272**
**507,192**
**222,134**
**13,944**
**744,542**
**2021**
**£**
**394,654**
**294,318**
**(181,780)**
**507,192**||_2020_
_As restated_
_£_
_350_
_394,654_
_-_
_47,008_|
|---|---|---|---|---|
|||||_442,012_|
|||||_2020_
_£_
_327,166_
_418,047_
_(350,559)_|
|||||_394,654_|
Page 30
## **THE NUFFIELD OXFORD HOSPITALS FUND**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **15. Comparative Statement of Financial Activities** _**– As restated**_
|Notes
**Income and**
**endowments from:**
Donations and legacies
2
Investments
3
**Total income**
**Expenditure on:**
Raising funds
4
Charitable activities
5
**Total expenditure**
Net gains/(losses) on
investments
8
**Net movement in**
**funds**
Total funds brought
forward as restated
**Total funds carried**
**forward**|**Restricted**
**Endowment**
**Fund**
**2020**
**£**
_-_
_-_
_-_
_-_
_-_
_-_
_232,572_
_232,572_
_23,365,611_
_23,598,183_|**Accumulated**
**Income Fund**
**Pre 1963**
**2020**
**£**
_-_
_-_
_-_
_-_
_-_
_-_
_28,539_
_28,539_
_1,610,807_
_1,639,346_|**Accumulated**
**Income Fund**
**Post 1963**
**2020**
**£**
_-_
_884,644_
_884,644_
_48,401_
_465,839_
_514,240_
_(2,094)_
_368,310_
_1,025,338_
_1,393,648_|**2020**
**Total**
**£**
_-_
_884,644_|
|---|---|---|---|---|
|||||_884,644_|
|||||_48,401_
_465,839_|
|||||_514,240_|
|||||_259,017_|
|||||_629,421_
_26,001,756_|
|||||_26,631,177_|
Page 31
## **THE NUFFIELD OXFORD HOSPITALS FUND**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **16. Analysis of net assets between funds**
## **Analysis of net assets between funds - current period**
|Fixed asset investments
Current assets
Creditors due within one year
**Total**|**Restricted**
**endowment**
**fund**
**2021**
**£**
**24,074,051**
**963,320**
**-**
**25,037,371**|**Accumulated**
**income fund**
**pre 1963**
**2021**
**£**
**1,727,890**
**49,598**
**-**
**1,777,488**|**Accumulated**
**income fund**
**post 1963**
**2021**
**£**
**395,017**
**2,219,091**
**(744,542)**
**1,869,566**|**Total**
**funds**
**2021**
**£**
**26,196,958**
**3,232,009**
**(744,542)**|
|---|---|---|---|---|
|||||**28,684,425**|
## **Analysis of net assets between funds - prior period**
|_As Restated_
_Fixed asset investments_
_Current assets_
_Creditors due within one year_
_Total_|_Restricted_
_endowment_
_fund_
_2020_
_£_
_20,637,414_
_2,960,769_
_-_
_23,598,183_|_Accumulated_
_income fund_
_pre 1963_
_2020_
_£_
_1,589,980_
_49,366_
_-_
_1,639,346_|_Accumulated_
_income fund_
_post 1963_
_2020_
_£_
_377,684_
_1,457,976_
_(442,012)_
_1,393,648_|_Total_
_funds_
_2020_
_£_
_22,605,078_
_4,468,111_
_(442,012)_
_26,631,177_|
|---|---|---|---|---|
Page 32
**THE NUFFIELD OXFORD HOSPITALS FUND**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **17. Funds**
## **ENDOWED FUNDS**
## **Restricted Endowment Fund**
The capital of this fund has been built up by the investment and re-investment of the donation. Income from this fund is used to further the object of the Charity, but the capital cannot be realised for use as income.
## **Pre 1963 Accumulated Income Fund**
Income accumulated prior to the donor, Lord Nuffield's death in 1963 was capitalised and income from the investments is used to further the object of the Charity. Counsel's opinion obtained after the donor's death confirmed that Trustees may treat income accumulated prior to Lord Nuffield's death as if it were permanent capital of the fund. If considered essential by the Trustees, to the furtherance of that object, some or all of this capital could be realised to supplement income.
## **UNRESTRICTED FUNDS**
## **Post 1963 Accumulated Income Fund**
This is income accumulated after the donor, Lord Nuffield's death in 1963. The counsel's opinion obtained, confirmed that Trustees may accumulate this income but there must be an intent to use this fund to the furtherance of the Charity's object.
## **18. Related Parties**
Wintringham Partners LLP was incorporated on 5 April 2017 and acquired the land at Wintringham Park, St. Neots, Cambridgeshire. This partnership is owned by Wintringham Newco 1 Limited (66.67%) and Urban&Civic St Neots Limited (33.33%).
Nuffield Oxford Hospitals Fund (NOHF) owns a 22.5% share of 1 Wintringham LLP who have 100% ownership of Wintringham Newco 1 Limited and Wintringham Newco 2 Limited. This results in NOHF having an effective 15% ownership of Wintringham Partners LLP.
Loans totalling £7,707,547 _(2020: £9,984,135)_ were held by NOHF. To 1 Wintringham LLP £6,624,441 _(2020: £7,679,687)_ , 1 Wintringham LLP £nil _(2020: £1,814,999)_ , 1 Wintringham LLP £9,000 (2020: £9,000), Wintringham Newco 1 Ltd, £99,034 _(2020: £30,449)_ and Wintringham Partners LLP £975,072 _(2020: £450,000)_ .
Page 33
## **THE NUFFIELD OXFORD HOSPITALS FUND**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **19. Prior Year adjustment**
In 2021, the Trustees decided to change the accounting policy in respect of grants payable to a policy which is more aligned with current accounting practice and reflects the reality that grants are rarely if ever withdrawn. Under the revised policy grants are recognised at the point at which the grant award is communicated to the recipient. In the past, grants were recognised only when they were paid to the recipient. The effect of this change in policy has been reflected by restating the grants figure in the prior period and the closing reserve balances for the period before that. The following table summarises the impact on the financial statements.
As a result, the 2020 comparatives have been restated to take into account this prior year adjustment. The impact of this adjustment means that the total funds have decreased by £67,488 at 31 December 2020. In addition, the funds at 31 December 2019 also decreased by £327,166. In total therefore, the opening reserves at 1 January 2021 have been reduced by £394,654.
## **Reconciliation of reserves:**
|Unrestricted fund (as previously stated) at 31 December 2020
Grant expenditure adjustment for 2019 and previous periods
Grant expenditure adjustment for 2020
Unrestricted fund (as restated) at 31 December 2020
**Reconciliation of 2020 surplus**
2020 surplus (as previously stated)
Grant expenditure adjustment relating to 2020
2020 surplus as restated|**£**
**27,025,831**
**(327,166)**
**(67,488)**|
|---|---|
||**26,631,177**
**696,909**
**(67,488)**|
||**629,421**|
Page 34
**THE NUFFIELD OXFORD HOSPITALS FUND**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **20. Reconciliation of net movement in funds to net cash flow from operating activities**
|Net income for the period (as per Statement of Financial Activities)
**Adjustments for:**
Gains on investments
Dividends, interests and rents from investments
Decrease in debtors
Increase/(decrease) in creditors
**Net cash provided by operating activities**|**2021**
**£**
**2,053,248**
**(1,645,488)**
**(1,121,064)**
**1,208,862**
**302,530**
**798,088**|_2020_
_£_
_As restated_
_629,421_|
|---|---|---|
|||_(259,017)_
_(884,644)_
_1,332,274_
_88,729_|
|||_906,763_|
## **21. Analysis of cash and cash equivalents**
|Cash in hand
Cash with Investment managers
**Total cash and cash equivalents**|**2021**
**£**
**2,100,627**
**21,862**
**2,122,489**|_2020_
_£_
_2,127,867_
_553,731_|
|---|---|---|
|||_2,681,598_|
## **22. Analysis of changes in net debt**
|Cash at bank and in hand
Liquid investments – cash held by Investment managers|_At 1_
_January_
_2021_
_£_
_2,127,867_
_553,731_
_2,681,598_|**Cashflows**
**£**
**(27,240)**
**(531,869)**
**(559,109)**|**At 31**
**December**
**2021**
**£**
**2,100,627**
**21,862**|
|---|---|---|---|
||||**2,122,489**|
Page 35